Congestion Pricing Falters in New York, Again

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State lawmakers agreed on surcharges on rides by for-hire vehicles in Manhattan south of 96th Street, including $2.50 for yellow taxis and $2.75 for services such as Ubers and Lyfts.CreditCreditDrew Angerer/Getty Images

Governor Andrew M. Cuomo set the stage for an ambitious congestion pricing plan when he declared that it was “an idea whose time has come.”

But that time is not now.

There was little about congestion pricing in the state budget negotiated Friday by Mr. Cuomo and state lawmakers despite months of lobbying by advocates, a six-figure media campaign, and rallies by transit riders. The most significant development was a new surcharge that will be tacked on to every ride in for-hire vehicles in Manhattan south of 96th Street: $2.50 for yellow taxis; $2.75 for other for-hire vehicles, including Ubers and Lyfts; and 75 cents for car pool rides such as Via and UberPool.

Notably missing was the congestion zone that was the centerpiece of a congestion pricing plan, laid out by a state task force to reduce gridlock on the streets and raise money for the city’s struggling subway, which is operated by the Metropolitan Transportation Authority. Under that plan, unveiled in January, drivers could have been charged a daily fee — $11.52 for passenger cars, $25.34 for trucks — to enter a congestion zone in Manhattan, from 60th Street south to the Battery, at busy times.

The budget agreement drew criticism from a coalition of transportation advocacy groups, which expressed disappointment that months of pushing for congestion pricing had yielded so little.

“Fixing our transit system should have been Albany’s first priority this year,” they said in a joint statement. “Unfortunately, the final budget does not offer a credible plan to modernize the M.T.A., nor provide a sufficient revenue stream to make it possible. The crisis in our subways and on our streets will continue, and New Yorkers will continue to demand action from Governor Cuomo and state lawmakers.”

From the start, there was resistance from drivers, their advocates, commercial truckers and some elected officials — including state legislators — who saw congestion pricing as mainly benefiting Manhattan residents, at the expense of those from outside the borough who have to drive for work, school, medical appointments or other obligations because they do not have easy access to public transit or cannot use it.

“I haven’t won the war yet on congestion pricing, but I did win this battle — it’s not getting in the budget,” said Assemblyman David I. Weprin, a Queens Democrat who helped lead the opposition.

Still, Mr. Cuomo and some congestion pricing advocates have sought to cast the new surcharge on for-hire vehicles as a first step toward congestion pricing, which would reduce car congestion and establish a long-term revenue source for public transportation. The task force had also recommended a per-ride surcharge of $2 to $5 on for-hire vehicles in a phased-in approach to congestion pricing.

Peter Ajemian, a spokesman for the governor, said the new surcharge fees would “provide hundreds of millions of dollars in additional revenue to the M.T.A. every year,” and called the budget “a huge win for the millions of people who rely on mass transit every day.” Fix NYC Transit, another coalition, said, “the governor and legislative leaders deserve credit for enabling New York to begin tackling our traffic and transit woes.”

The budget agreement also expands an existing traffic camera program that targets drivers who block bus lanes, and provides funding for half of an $836 million emergency subway repair program, but would force the city to pay the remainder.

Supporters of congestion pricing said they would continue to fight for a congestion zone and other measures.

“We are disappointed that traffic challenges, aside from more bus enforcement cameras, are not addressed,” said Kathryn Wylde, a member of the task force and president and chief executive of the Partnership for New York City, a group of the city’s top business leaders. “The legislature is in session until the end of June, and congestion pricing can be taken up outside the budget, so we will continue to urge moving forward.”

While congestion pricing has been shown to work in London, Stockholm and Singapore, it has stalled in New York since at least the 1970s. The last major effort in 2008 by then-Mayor Michael R. Bloomberg sought to charge drivers $8 to enter a similar congestion zone in Manhattan, but died in Albany after legislative leaders refused to bring it to a vote.

Many had expected it to be different this time after Mr. Cuomo almost single-handedly revived congestion pricing last summer and assembled the task force, Fix NYC, to come up with a plan. Supporters saw the city’s subway meltdown and daily traffic problems as giving new urgency and momentum to the issue.

But despite the backing of dozens of influential business, labor, transportation and community groups, congestion pricing’s prospects again waned in Albany. In a sign of things to come, the congestion zone was not in budget amendments submitted by the governor, or in budget proposals by the Republican-led Senate and the Democrat-dominated Assembly.

Mr. Cuomo, a Democrat who faces re-election in November, came under increasing criticism from advocates who said he did not do enough to move congestion pricing forward. They pointed out that he did not aggressively line up legislative support as he had with other divisive issues such as same-sex marriage and the minimum wage — a suggestion the governor’s aides rejected.

In recent weeks, the governor and his aides had sought to work around legislative opposition to the congestion zone by negotiating for authorization of about $200 million for infrastructure and technology investments for a congestion zone. The more controversial details of how it would actually work — the boundaries, prices, hours and any exemptions — would be shelved until next year or later.

But in the end, what they got was the surcharge on for-hire vehicles, whose skyrocketing numbers have added to congestion woes. It was Assembly leaders who initially proposed the $2.75 per-ride surcharge for Uber, Lyft and the other ride-hailing apps, though they have said the surcharge was not about congestion pricing but about raising money for the M.T.A.

Other cities and states — including Chicago, Philadelphia and Portland, Ore. — have increasingly imposed fees or taxes on ride-hailing services to raise money. Last year, New York State also approved a 4 percent assessment on trips by the ride-hailing services that begin outside New York City (rides in the city are already subject to state and local taxes), which is expected to raise $24 million a year for the state’s general fund.

Today, more than 103,000 for-hire vehicles operate in New York City, or more than double the roughly 47,000 in 2013, according to the Taxi and Limousine Commission. In contrast, yellow taxis are capped by city law at 13,587.

Alix Anfang, a spokeswoman for Uber, which backed the Fix NYC plan, said that the company supported the new surcharge because it was limited to Manhattan, where there is more congestion and also more transportation options than in the other boroughs.

“We will continue to advocate for the adoption of a comprehensive congestion pricing plan that is applied to all vehicles because it is the best way to fully fund mass transit and reduce traffic in the central business district,” she said.

While the surcharge on taxis is lower, it is still a blow to an industry that has been decimated by the advent of ride-hailing apps.

Taxi owners and drivers have argued that they should be exempt from any new fees because it is their rapidly expanding rivals who are creating much of the congestion, and because they pay far more for medallions that should already give them access to Manhattan streets.

“It is deeply concerning and disappointing that the state is piling on costs on the yellow taxi industry when it is well known that the yellow taxi industry and its mainly immigrant medallion owners and drivers are struggling,” said Ron Sherman, president of the Metropolitan Taxicab Board of Trade, which represents medallion owners.

A version of this article appears in print on , on Page A21 of the New York edition with the headline: Despite Months of Lobbying, Congestion Pricing Again Fails in New York. Order Reprints | Today’s Paper | Subscribe